The Herald Bulletin

Morning Update

Community

August 25, 2013

Nancy Vaughan: Growing the market for love

A few months ago the three leading sources of information about charities issued a joint letter to “Donors of America” titled “The Overhead Myth.”

“We ask you to pay attention to other factors of nonprofit performance: transparency, governance, leadership, and results,” stated the CEOs of BBB Wise Giving Alliance (overheadmyth.give.org), Guidestar (overheadmyth.guidestar.org) and Charity Navigator (charitynavigator.org/thebestandworstwaytopickacharity).

The letter cites numerous studies that indicate not only that overhead is a poor measure of a charity’s performance, but that “underinvesting in overhead creates a range of negative outcomes which undermine quality and sustainability.” Noting that overhead costs include important investments charities make to improve their work: training, planning, evaluation, and internal systems as well as fund raising, the letter references what the Stanford Social Innovation Review has called, The Nonprofit Starvation Cycle.

One of the most dynamic spokespeople for the nonprofit sector, Dan Pollatta, author of Uncharitable, spoke to United Way professionals in May at the Staff Leaders Conference. A shortened version of his message is available on youtube as a TED talk (http://youtu.be/bfAzi6D5FpM).

The most compelling piece of Pollatta’s message, to me, is framed by his question, “Does the nonprofit sector have a serious role in changing the world?” His answer: business will leave behind the most disadvantaged and unlucky, and will not develop those markets for which there is no monetary measure. “The disabled need laughter, compassion and love in their lives. Where is the market for that? Philanthropy is the market for love.”

Yet, in the past 40 years in the US, poverty has remained at 12 percent of the population and nonprofits have remained at two percent of gross domestic product, with just 20 percent of nonprofit resources focused on health and human services. How can a sector without the tools to grow possibly gain the scale necessary to create real change?

Text Only
Community
  • FEA HB0424 Bids for Kids Bears - April 2014 Annual Bids for Kids auction starts Friday

    Breaking the cycle of child abuse is one of the most difficult things to do, but the people of Madison County aren’t ready to give up trying.

    April 24, 2014 1 Photo

  • Spotlight on the kids When pianist Nathan Cook started volunteering for the special education program at Anderson High School, he started mulling over ideas how he could do more to help.

    April 23, 2014

  • Jim Bailey: Figuring out how to have the good in life without the bad Most of us have had those faith-shaking episodes in our lives. The tragic episodes that leave us wondering what life is all about.

    April 24, 2014

  • Community Briefs: April 24 A compilation of community news as published in the Thursday edition of The Herald Bulletin.

    April 24, 2014

  • FEA - HB0423 - food truck file -NE Food Truckin' Thursday returns

    A new favorite that combines food and cars is rolling back into town next week. Food Truckin' Thursday starts back up May 1. For about six months, local vendors will pull up their food trucks to Citizens Park Plaza at Ninth and Main streets from 11 a.m. to 1:30 p.m.

    April 23, 2014 2 Photos

  • FEA HB0423 Tipton Community Briefs: April 23

    A compilation of community news as published in the Wednesday edition of The Herald Bulletin.

    April 23, 2014 1 Photo

  • Community Briefs: April 22

    A compilation of community news as published in the Tuesday edition of The Herald Bulletin.

    April 22, 2014

  • life saver.jpg Man credited with saving life says he was doing his job

    When Richard Goff walked into Louis Moyer's home, he smelled gas.

    April 22, 2014 1 Photo

  • FEA HB0421 Silent Movie 2 Acting without words

    Nineteen area students will take a walk down the red carpet Tuesday evening as their film projects premiere at the Paramount Theatre during the WRC Silent Film Festival.

    April 20, 2014 2 Photos

  • Community Briefs: April 21

    A compilation of community news as published in the Monday edition of The Herald Bulletin.

    April 20, 2014

Reader Pet Photos


We're looking for your best pet photos! Share your photos of your favorite non-human companions in our new photo gallery. Click here to upload your photos

Hyperlocal Search
Premier Guide
Find a business

Walking Fingers
Maps, Menus, Store hours, Coupons, and more...
Premier Guide
Parade
Magazine

Click HERE to read all your Parade favorites including Hollywood Wire, Celebrity interviews and photo galleries, Food recipes and cooking tips, Games and lots more.
More Resources from The Herald Bulletin